Overview

* Blackbaud Q2 2025 GAAP total revenue was$281.4 million, down 2.1%

* Adjusted EPS for Q2 2025 beats consensus, reflecting improved profitability

* Company raises full-year 2025 financial guidance across all key metrics

Outlook

* Blackbaud ( BLKB ) raises 2025 GAAP revenue guidance to $1.120 bln-$1.130 bln

* Company expects 2025 non-GAAP EPS of $4.30 to $4.50

* Blackbaud ( BLKB ) sees 2025 non-GAAP adjusted EBITDA margin of 35.4%-36.2%

* Company forecasts 2025 non-GAAP adjusted free cash flow of $190 mln-$200 mln

Result Drivers

* DIVESTITURE IMPACT - Decline in GAAP revenue driven by divestiture of EVERFI

* ORGANIC REVENUE GROWTH - Non-GAAP organic revenue increased 6.8%, driven by operational execution and productivity improvements

* RULE OF 40 - Achieved highest quarterly performance in Rule of 40, indicating strong revenue growth and profitability

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $1.21 $1.06 (5

Adjusted Analysts

EPS )

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"

* The average consensus recommendation for the software peer group is "buy."

* Wall Street's median 12-month price target for Blackbaud Inc ( BLKB ) is $70.00, about 7.9% above its July 29 closing price of $64.50

* The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)